Q&A: The tug-of-war every owner is losing

As the boutique and lifestyle landscape becomes increasingly crowded, what truly differentiates a hotel, and how can owners preserve that differentiation?

Guy Cook, Vice President, Luxury, Lifestyle & Classics Development (East), Hyatt: I think ultimately having a great story. I think telling the true, authentic story, working with either the architect or working with the history of the location. Bringing in the right branding firm is critically important. So telling an authentic story, and then ultimately, in our case, picking a brand, right? We think that drives a lot of value. I think you just have to tell the right story.

Kimberly Christner, founder, president & CEO, Cornerstone Hospitality: I think when people come to have an experience, they want to have a real experience. And most of our properties that we develop are based on the fabric of the community. We want them to be a part of the community. We want the community to be proud of them and to feel like they’re ambassadors for that particular property. And so, telling their story in an authentic way, including the community in the decision and in the branding, and letting them be a part of that process has made huge differences in our success in our markets.

Ron Pohl, president of WorldHotels and International Operations, BWH Hotels: First of all, that’s what the customer wants today. They want unique, different, experiential for that location, and to feel like they’re part of that community while they’re there. We start with an immersion into the hotel to ask: What is your story? Not only does the hotel need to align on it, but we as a brand have to align as well. That way, we help authenticate that story as the property moves forward and continue sharing it with the consumer.

Kamalesh (KP) Patel, Immediate Past Chairman, AAHOA Board of Directors: We’re here at the JW Marriott [Desert Ridge Resort & Spa]. Beautiful. Service is incredible. It may not have the greatest story, but it's absolutely a consistent story. You're not going into 10 different places and getting 10 different experiences. This is repeatable, even at smaller-sized properties. We've got 30-, 40-unit, beautiful—what I would say, economy properties—with the story. It’s just a matter of giving that special touch that brings the community and that guest together.

If an owner leaves this room today with one actionable rule of thumb regarding brand selection or owner economics, what should it be?

Ron Pohl: I think probably most important is to understand where you want to go with the property. Brands can help you get there in most cases, but we have to be aligned from the very beginning. If you’re not successful, we’re not successful. So let’s establish what that is up front, and if it works, great, and sometimes the deal doesn’t work, and you have to say, ‘I can't do that for you,’ but at least you have an honest conversation.

Kimberly Christner: I think when you're looking at the property that you're developing, whether it’s a sovereign or an independent, it’s looking at the market. What can it bear? What can you pass to? What debt service can it bear for this property, and what the performance metric is going to look like?... And what is the price they're willing to pay for that? Does that fit into the metric, the financial metric of owning and operating that property? I think that's probably the bigger picture item for me.

Guy Cook: This one—it seems obvious—but do the research. Talk to multiple brands, talk to multiple capital sources, talk to banks, talk to management companies. You shouldn’t make the decision… without talking to multiple people. 

Kamalesh (KP) Patel: For me, it’s important to understand a brand is not going to fix your product. They are there as an avenue to assist you. But if you’re—and I say this lovingly, because I’m a hotelier—if you’re just an honestly bad operator, no brand is going to fix that. If you walk away with one thing…everything you do, everything you decide, should start with one simple premise: How does it affect my guest?